I also suggest go with the range finder. About 90% of my street shots are with an Leica M2 and Canon 35/2 lens. You can pick up a user M2 usually for under $600.
The other 10% I use an N80 but with a Nikkor 28/2.8. You don't usually want a zoom lens for street work. I picked up the 28 on ebay for a little over $100. The N80 with the 28 would be a small package by SLR standards. Just a thought.